London taxi fares could increase nearly 9% if a tariff review that covers the drivers' increasing operating and living costs are approved.
Transport for London (TfL) are considering increases to the fares for shorter taxi (black cab) journeys (Tariffs 1, 2 and 3) and making the fares for longer taxi journeys (Tariff 4) higher.
They are also proposing changes to the extra charge for booked taxis, the additional charge for taking a taxi from one of the taxi ranks at Heathrow Airport, and the fixed-fare shared-taxi scheme that operates during the Wimbledon Tennis Championships.
Taxi (black cab) fares are reviewed each year. The fares were last increased in 2023.
When TfL review black cab fares, they take a number of factors into consideration. They do this by using the Cost Index and this takes into account changes in costs for taxi drivers, and how much general earnings have changed over the past year.
If tariffs were to reflect the change in both taxi drivers’ operating costs and average national earnings too, tariffs should increase by 8.92%.
However, last year taxi drivers were subjected to a BELOW inflation rise despite the huge rise in vehicle and fuel costs and cost of living.
TfL have again made available below inflation tariff changes that would reflect just the changes to operating costs (5.2%) and just changes to average national earnings (3.72%).
In 2023 demand for taxis at their current prices has been the highest for over a decade. Despite the high demand, recruitment for new taxi drivers remains low, prompting calls to make the job more attractive. Pay that follows the cost of living and operating is one way of achieving that.
A Transport for London spokesperson said: “We're reviewing taxi (black cab) fares and tariffs and would like your views on whether changes should be made to the current taxi fares that are charged by London taxi drivers. “We are proposing changes to the fares for longer taxi journeys (Tariff 4) and the extra charge for taxi journeys that start from one of the taxi ranks at Heathrow Airport. We're also reviewing the extra charge for booked taxis and the fixed-fare shared-taxi scheme that operates during the Wimbledon Tennis Championships.”